South Korea Finance Nominee Backs Stronger Capital Market Discipline

South Korea capital market reform will be a priority for finance minister nominee Lee Hyung-il as he seeks to address the “Korea discount” and strengthen corporate governance.

Lee, currently first vice finance minister, outlined plans to revive potential growth, reduce economic inequality and advance market reforms ahead of his parliamentary confirmation hearing.

He said the government would accelerate three national projects, promote regional growth hubs and increase investment in advanced technologies.

Inflation and housing supply were identified as immediate concerns, with Lee saying price stability was essential to household welfare and that additional measures could be introduced before the Chuseok holiday.

On capital markets, Lee said stronger governance and market discipline were needed to reduce persistent valuation discounts. Proposed measures include formalising unsolicited “bear hug” takeover bids.

He also plans to strengthen the Finance Ministry’s role in coordinating economic policy across government.